-Convertible Preferred Stock -TG pre money: 5M -TG post money: 9M Red Baron: -Convertible Participating -Preferred Stock -RB pre money: 6M -RB post money: 12M -capped at 2.5 

Question: HOW TO DRAW THE PAYOFF (EXIT) DIAGRAMS?

Transcribed Image Text:

Top gun Founders diluted equity: 26% Red Baron diluted equity: 31% Top Gun Pre-money Valuation, Sm 5,000,000 Post-money Valuation, Sm 9,000,000 Investment by VC, $m 4,000,000 Investment round outstanding, $m Cap Table Conversion Price Common Preferred Total Founders 2,400,000 2,400,000 Languita Angels 0.90 315,000 35,000 Top Gun 1.00 4,000,000 350,000 4,000,000 % of total 26.67% 3.89% 44.44% Option Pool 1.00 2,250,000 2,250,000 25.00% Total Outstanding Shares 1.00 4,965,000 4,035,000 9,000,000 100.00% Languita Angels Principal Interest accrued Total debt Interest Period Discount Cap 300000 15000 315000 10% 0.5 90% 5,000,000 Red Baron Pre-money Valuation 6,000,000 Post-money Valuation 12,000,000 Investment by VC 3,000,000 Investment round outstanding 3,000,000 Cap Table Conversion Price Common Preferred Total % of total Founders 3,822,000 3,822,000 Languita Angels 0.83 315,000 Red Baron 1.00 VC #2 1.00 63,000 3,000,000 3,000,000 378,000 3,000,000 31.85% 3.15% 25.00% 3,000,000 25.00% Option Pool 1.00 1,800,000 1,800,000 15.00% Total Outstanding Shares 1.00 5,937,000 6,063,000 12,000,000 100.00% Languita Angels Principal Interest accrued 300000 15000 315000 Total debt Interest Period Discount Cap 10% 0.5 90% 5,000,000 Top gun Founders diluted equity: 26% Red Baron diluted equity: 31% Top Gun Pre-money Valuation, Sm 5,000,000 Post-money Valuation, Sm 9,000,000 Investment by VC, $m 4,000,000 Investment round outstanding, $m Cap Table Conversion Price Common Preferred Total Founders 2,400,000 2,400,000 Languita Angels 0.90 315,000 35,000 Top Gun 1.00 4,000,000 350,000 4,000,000 % of total 26.67% 3.89% 44.44% Option Pool 1.00 2,250,000 2,250,000 25.00% Total Outstanding Shares 1.00 4,965,000 4,035,000 9,000,000 100.00% Languita Angels Principal Interest accrued Total debt Interest Period Discount Cap 300000 15000 315000 10% 0.5 90% 5,000,000 Red Baron Pre-money Valuation 6,000,000 Post-money Valuation 12,000,000 Investment by VC 3,000,000 Investment round outstanding 3,000,000 Cap Table Conversion Price Common Preferred Total % of total Founders 3,822,000 3,822,000 Languita Angels 0.83 315,000 Red Baron 1.00 VC #2 1.00 63,000 3,000,000 3,000,000 378,000 3,000,000 31.85% 3.15% 25.00% 3,000,000 25.00% Option Pool 1.00 1,800,000 1,800,000 15.00% Total Outstanding Shares 1.00 5,937,000 6,063,000 12,000,000 100.00% Languita Angels Principal Interest accrued 300000 15000 315000 Total debt Interest Period Discount Cap 10% 0.5 90% 5,000,000

Answer rating: 100% (QA)

Payoff Exit Diagrams for Top Gun and Red Baron Heres a guide to help you draw the payoff diagrams for Top Gun and Red Baron considering their converti... View the full answer